How to find a low rate home loan to save money on your interest repayments.
The home that you purchase will be one of your single biggest assets. However, the purchase of a mortgage along with the interest paid over the life of the loan could often equal or exceed the sale price of the house. That is why it’s important to get the best deal on your home loan as possible. To get a competitive interest rate, you’ll need to shop smartly.
You could pay off your home loan sooner with an low interest rate. When comparing these loans, be mindful that a low rate home loan is a category all on its own, with its own specific features and benefits.
Low Rate Home Loans
Rates last updated January 24th, 2017.
- Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier)
Comparative rate increases by 0.03% | Interest rate increases by 0.15%
December 28th, 2016
- Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate Discount Rate $150k+ <80% LVR (Owner Occupier)
Comparative rate increases by 0.30% | Interest rate increases by 0.20%
January 6th, 2017
- NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
Interest rate increases by 0.23%
January 16th, 2017
Aussie’s Mortgage Brokers can save you time and effort by helping you research, organise and apply for your home loan, at no cost to you. They compare hundreds of home loans to help find the right deal for you. Fill out the form on the left and an Aussie Mortgage Broker will meet you at a time of your choosing to discuss your needs and help you find the right loan.
Features of low rate home loans
A low interest rate home loan may sound like the perfect mortgage product, but it is not for everybody. You need to determine what you want out of your home loan and how you intend to use your loan with its features and into the future. Consider your needs in relation to the common features of low rate home loans, which include:
- A lower interest rate. When compared to loans which are not specifically low rate home loans, the interest rate offered can be almost 1% lower.
- A variable interest rate. A low rate home loan will also often require that you are charged a variable interest rate on your mortgage. This means that the interest rate on your loan may fluctuate as official rates rise and your lender raises their standard variable rates too. At the same time a variable loan interest-rate home loan also allows you to take advantage of drops in the official rates.
- Shop around for fixed rate periods. Some low rate home loans will also offer you the option to fix your low rate for a set period. A fixed interest rate gives you the security of ongoing low repayments, which you know will be the same each month. The fixed rate periods on low rate home loans are typically for shorter periods and where you may normally be able to choose a fixed-rate period of up to 10 years, on a low rate home loan you may only be able to choose a period of three years.
- Few other features. Lenders can afford to offer such a low rate because these loans do not have a myriad of other features which they have to maintain for you. Don't expect a redraw facility, an offset account, loan portability or other features which are commonly included now on more standard home loans. If you want both a low rate home loan with features which can help you manage your mortgage, shop around for the combination which suits you.
Benefits of low rate home loans
While you may be wondering whether you are suited to foregoing typical home loan features in favour of a lower interest rate, consider whether the benefits of a low rate home loan would benefit you in your situation:
- Lower repayments. With a lower interest rate you are required to make a lower monthly repayment because you have less interest to repay. This may suit you forward your first home loan if you want to adjust easily to being mortgage holder, or you may choose to consistently paid more than the minimum amount, to repay your loan sooner.
- Less impact from official rate rises. Even though most low rate home loans have a variable rate, if your loan interest rate is starting out lower, then it is going to take more time and more rises for it to affect you.
- A low fuss easy to manage mortgage. If you like things to be straightforward and simple than a low rate home loan may be the best for you, because you don't have a range of new loan features. Loan features can be confusing, as you need to remember to use them to get the full value out of the fees you pay. Instead you can simply make your monthly repayments and pay off your mortgage simply and easily.